CLIENT: BOTSWANA POWER CORPORATION
Country: Botswana
Sector: Utility/Infrastructure
Service: Financial Management/Management Consulting
Project: Development and Implementation of long range plan and strategy
Project Description: Botswana Power Corporation is a parastatal utility which was formed in 1970 by an Act of Parliament is responsible for the generation, transmission and distribution of electricity within Botswana to areas approved by the Ministry of Minerals, Energy and Water Resources.
IBS was engaged as a subcontractor to Paul Bender Consulting (PBC) to develop a 10-Year Comprehensive Financial Strategy (Financial Strategy). The Financial Strategy identified the resources and activities required to close the gap between tariff revenues and expenditures and allow BPC to operate on a financially sustainable basis. A key element of Botswana’s water and wastewater sector Reforms is the consolidation of all water and wastewater operations in the country into one utility (WUC). The project also included: developing demand and growth forecasts, Client demographic and use patterns, operating cost components and cost drivers, revenue and rate requirements, alternate rate modeling, and a review of operations to determine opportunity areas for business improvement and operational efficiency/improvement. Furthermore, IBS is to:
- Develop a comprehensive 10 year demand forecast;
- Determine power supply gaps and propose options to fill gap;
- Evaluate current power purchase contract and determining fiscal impact and contract compliance;
- Evaluate status, condition and fiscal impact of power generating plant under construction but experiencing significant delays and cost overruns;
- Evaluate future proposed power generating plant plans;
- Assess and evaluate current coal purchase contract and determining fiscal impact and contract compliance; and
- Overall the assessment of operations to determine areas of operating efficiencies and improvements.